Buying a Home with a Native American Mortgage:
A Section 184 Native American Loan Offers Many Benefits to Home Buyers
Buying a new home can be a very rewarding experience. As a home buyer, there is a lot you need to know and selecting the right loan is definitely one of them. If you are eligible, a Section 184 Native American Loan is one of the best loan programs available, even for first time home buyers. Eligible applicants love this program because it offers a very low down payment of 2.25%, flexible underwriting, reduced mortgage insurance premiums and great rates! This loan can be used to purchase or refinance a primary residence.
Purchase A Home With A Smaller Down Payment
Now more than ever banks are requiring large down payments, many loan programs require 10-20% down, putting home ownership out of reach for many prospective home buyers. A Section 184 Native American Loan is perfect for home buyers because the borrower can finance 97.75% of the home’s purchase price and buy that home with a small down payment of only 2.25%.
Save Hundreds of Dollars Every Single Month
Because the loan is a benefit to members of a federally recognized tribe, a Section 184 Native American Loan has monthly mortgage insurance that is less when compared to other programs. Interest rates for Section 184 Native American Loans typically match conventional loans or can be lower in many situations. These two advantages add up to significant monthly savings.
Higher Loan Amounts Allow You to Borrow More
With a maximum loan amount of $420,680, you will have access to a broad range of homes using the Section 184 Native American Loan. Keep in mind that not every applicant will qualify for the maximum Section 184 Native American Mortgage loan amount. The most you can borrow will depend on other factors, like your credit score, debt-to-income ratio, and down payment amount.
It’s Easier to Qualify for a for Section 184 Native American Loan
It’s no secret, getting approved for a conventional home loan these days can be very difficult, particularly for young families and first time home buyers. Because the government backs the Section 184 Native American Loan, the credit and income standards are not as strict making the loan qualification process easier.
The advantages are real. A lower monthly payment, easier qualification guidelines and the ability to purchase with a smaller down payment make a Section 184 Native American Loan the best option for members of a federally recognized tribe.
Do I Qualify?
The Native American Home Loan Advantage
- A reduced down payment of only 2.25% of the purchase price
- Maximum loan amount of $420,680
- Compared to many other loan programs, the monthly mortgage insurance is significantly less
- The seller can pay all of your closing cost up to 6% of the loan amount
- A predictable fixed interest rate
- Section 184 Native American Loans do not have a pre-payment penalty
- A Section 184 Native American Loan is easier to qualify for than a conventional mortgage loan
- A Section 184 Native American Loan can be assumed when you go to sell
- Section 184 Native American Loan rates are comparable to conventional loan interest rates